US lawmakers move to tighten chip rules for China in wake of Nvidia spy allegations

In the United States, lawmakers are moving to tighten controls on exports of advanced semiconductors to China following allegations that Nvidia CEO Jensen Huang had a relationship with a suspected Chinese spy. Both Democratic and Republican lawmakers are working together to pass related legislation swiftly. The situation has become a potential political liability for Huang, who has previously advocated for loosening regulations on semiconductor exports, and for President Donald Trump, who has supported Huang.

Congress is also expected to investigate the scandal and the possibility of leaked intelligence. Senator Elizabeth Warren and Senator Jim Banks have called for the passage of the AI Overwatch Act and Chip Security Act, respectively. Rep. Bill Foster, a Democrat, co-sponsored the Chip Security Act with a Republican colleague. A letter was sent to the Secretary of Commerce urging the immediate suspension of exports of advanced AI semiconductors to China.

The legislation under discussion includes the AI Oversight Act, the Chip Security Act, and the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act. The MATCH Act could have an impact on the Korean semiconductor industry if passed. The bills are part of a National Defense Authorization Act package for 2027, currently under discussion in the Senate.

Former officials predict bipartisan cooperation and more extensive investigations into US-China technology relations. President Trump, who defended Huang, said Huang denied knowing the woman was a spy and that Trump was unaware of the allegations when he visited China in May. Trump also mentioned that the FBI is investigating the matter.